Canada's economy rebounded more than expected in April, data showed on Tuesday, following a slight contraction in the previous month, allaying concerns that a tariff-led slowdown was getting more entrenched. The Gross Domestic Product in April grew by 0.5% on a month on month basis, Statistics Canada said, adding the growth was the largest monthly expansion in nine months.
The Reuters Inside Track newsletter is your essential guide during the World Cup. Sign up here. * Analysts polled by Reuters had estimated the GDP in April to grow by 0.4% on a monthly basis, after the GDP contracted by 0.1% in March. * Canada's economy had entered a technical recession at the end of the fourth quarter but the Bank of Canada and most economists had dismissed it as a one-off. * Canada's economy has faced a range of tariffs from the United States administration since last year on some crucial sectors but its impact has largely stayed contained within the affected sectors. * The uncertainty from tariffs and the fate of the U.S.-Mexico-Canada free trade deal which is up for a review on Wednesday has held back investments and job growth. * StatsCan said that 14 of the 20 industrial sectors grew in April. * The goods-producing sector, which contributes up to a quarter of the economy, posted a growth of 1.2%, StatsCan said, adding that mining, quarrying, and oil and gas extraction sector rose 2.9% in April, its largest monthly growth rate in more than two years.
* The construction sector registered a growth of 0.7%, its first growth in five months, while the manufacturing sector posted a growth of 0.6%. * Services-producing industries, which accounts for three-quarters of the GDP with sectors such as real estate, transportation, wholesale trade among others, grew by 0.3% in April, date showed. * Transportation and warehousing rose 0.9% in April, up for the second time in three months. * An advance estimate for May showed that the economy is likely to grow by 0.1% on a monthly basis, the statistics agency said.
